With the recent interest rate hike signaling the end of an era for cheap loans, real estate developers and investors are racing to the finish line to secure favorable financing. Lenders are narrowing their loan criteria by putting greater emphasis on well-capitalized sponsors building projects in premium locations.

“Interest rates have increased during the last several months and will continue to do so, until the global markets stabilize,” Charles Penan, managing director of Aztec Group, tells GlobeSt.com. “While lenders have become more conservative, that should not be misinterpreted as a halt in commercial lending.”

Penan assures banks and finance companies are ready, willing and able to make loans. Lending institutions are looking to make loans on all property types with strong borrowers that contribute substantial equity to the project, he says. With a continued appetite from banking institutions, Penan and his colleagues at Aztec Group expect to see a stabilization in interest rate volatility and loan terms over the course of this year.

How are hotels impacting modern metros? Get one perspective in my recent column. And find out what customers expect from hotel food and beverage operations.

ATLANTA—PMZ Realty Capital secured an $82.5 million floating rate loan against the Embassy Suites Atlanta at Centennial Olympic Park, a 321-suite hotel featuring over 16,000 square feet in meeting space. The deal marks the fourth loan PMZ has closed for Legacy Property Group.

“A floating rate loan worked well for this particular property because the hotel had just undergone a major $10 million renovation over the last year,” says Peter Berk, president, PMZ Realty Capital-Hotel Finance Group. “There was significant interest in the lending community for this loan due to its trophy quality and irreplaceable location adjacent to the Georgia World Congress Center and the Georgia Aquarium.”

The Embassy Suites Atlanta at Centennial Olympic Park is located in Downtown Atlanta, eight miles from the Hartsfield-Jackson Atlanta International Airport. The hotel is also next to the World of Coca-Cola in the Luckie Marietta District.

“This loan allowed us to retire our existing financing and provided a stabilization period for the asset now that the renovation is complete,” says David Marvin, founder and president of Legacy Ventures. “As a longtime supporter of Atlanta and the resurgence of their downtown market and the Centennial Park District, it's especially significant to continue to revitalize this area. This renovation helps us continue down that path and invest in the future of the city.”

With the recent interest rate hike signaling the end of an era for cheap loans, real estate developers and investors are racing to the finish line to secure favorable financing. Lenders are narrowing their loan criteria by putting greater emphasis on well-capitalized sponsors building projects in premium locations.

“Interest rates have increased during the last several months and will continue to do so, until the global markets stabilize,” Charles Penan, managing director of Aztec Group, tells GlobeSt.com. “While lenders have become more conservative, that should not be misinterpreted as a halt in commercial lending.”

Penan assures banks and finance companies are ready, willing and able to make loans. Lending institutions are looking to make loans on all property types with strong borrowers that contribute substantial equity to the project, he says. With a continued appetite from banking institutions, Penan and his colleagues at Aztec Group expect to see a stabilization in interest rate volatility and loan terms over the course of this year.

How are hotels impacting modern metros? Get one perspective in my recent column. And find out what customers expect from hotel food and beverage operations.